Washington
President George W. Bush signed a $152 billion plan to fortify the
flagging US economy against a recession with tax incentives for
businesses and average Americans.
Passed by Congress with unusual speed after Bush proposed an
economic stimulus package last month, the temporary measures are
mainly designed to put more spending money in US consumers' pockets.
"You know, I know a lot of Americans are concerned about our
economic future," Bush said at a White House signing ceremony
Wednesday. "The bill is large enough to have an impact."
Individuals will get the bulk of the one-time income tax relief -
rebate cheques this year of up to $600 for singles, $1,200 for
married couples, plus $300 per child. Consumers account for about
two-thirds of the US economy.
"This package gets money into the hands of Americans struggling to
make ends meet, helps families with children, cuts taxes for small
businesses that will create new jobs and stimulates our slowing
economy," said Democrat Nancy Pelosi, the speaker of the House of
Representatives.
The Bush administration and Congress worked closely to create the
package, aimed at giving a shot in the arm to an economy hit by a
housing market slump, high energy prices and rising unemployment. In
an election year, both parties are under pressure to address voter
concerns about the economy.
Democrats, who have a narrow majority in both houses, also wanted
the package to lengthen jobless benefits and help people pay heating
bills. Bush's Republicans blocked the effort, saying those measures
were too costly.
But the final version, agreed in the Senate last week, retained tax
rebates specifically for 250,000 disabled veterans and 21 million
senior citizens living on government pensions.
The package does not directly address the wave of foreclosures,
which is forcing some 200,000 Americans a month to give up their
homes because they can't pay their mortgages.
The Bush administration has worked with lenders to offer aid to a
limited group of people forced to give up their homes, including a
plan unveiled Tuesday for a 30-day suspension of foreclosures.
Democratic presidential candidates, notably former first lady
Hillary Clinton, have called for broader efforts to shield
overstretched homeowners against lenders.
Bush has said the US economy remains fundamentally sound despite
hitting a rough patch.
"In a dynamic market economy, there will always be times when we
experience uncertainties and fluctuations," he said Wednesday.
Bush and congressional leaders said the stimulus plan showed that
the two parties could overcome ideological divisions and work
together for the good of the country.
Working separately to ward off a recession, the US Federal Reserve
last month slashed its key interest rate in two steps by a combined
1.25 percentage points to three percent.
Economists have said that any temporary tax relief would have to
reach consumers quickly to offset a recession, and Bush had urged
Congress not to load the stimulus package with what he called
unnecessary spending.
Boloji.com is owned and managed by Boloji Media Inc Privacy Policy |
Disclaimer
No part of this Internet site may
be reproduced without prior written permission of the copyright holder.
